Submarket advantages
Located just off the I-5 corridor in Centralia, WA, The Varsity South is 25 miles south of the state capital of Olympia and 90 miles north of Portland, Oregon.
The property is situated within the Edison neighborhood, a community that benefits from a strong commercial presence, local services, and convenient access to highways. The Varsity South’s proximity to major regional employers—including Providence Centralia Hospital, Fred Meyer Distribution Center, and Centralia College—provides residents with ready access to employment, education, and essential services. The development also sits adjacent to NW Sportshub, a regional sports and event destination that drives consistent demand for short-term lodging.
About Centralia and the Olympia-Lacey-Tumwater MSA
Located in northwestern Lewis County, Centralia lies just outside the Olympia-Lacey-Tumwater MSA, one of Washington state’s fastest-growing regions.
Currently home to roughly 300,000 residents,1 the metropolitan area is actively diversifying its economy beyond its traditional resource-based roots, with growth in sectors such as healthcare, logistics, and manufacturing. Multifamily fundamentals in the market are robust, with rents in the state capital up 2.8% year-over-year.2 The hospitality sector also remains strong, supported by consistent tourism and sports-related traffic. This dual strength underpins the project’s unique income strategy, which integrates multifamily apartments with hotel Average Daily Rates (ADRs).
About The Varsity South
The Varsity South will feature 94 units comprising 42 reimagined hotel rooms and 52 new studio apartments. The project reflects Sage Investment Group's proven adaptive reuse approach—transforming underperforming hospitality assets into quality, attainable housing that meets acute local demand.
Sage Investment Group already owns and operates two other communities in Centralia, giving the firm deep operational knowledge of the local market. In a city of approximately 19,000 residents,3 Sage maintains a waitlist of over 700 prospective renters—underscoring the significant unmet demand for workforce housing in the area. The Varsity South is designed to help address that gap while delivering stable, income-producing returns backed by proven local demand.
About Sage Investment Group
Founded in 2020, Kirkland, Washington-based Sage Investment Group specializes in hotel-to-multifamily conversion projects. With a portfolio spanning 32 projects and more than 3,000 units, Sage Investment Group’s unique strategy results in inclusive and attainable communities in high-growth markets nationwide.
